Union government sets up panel to deal with stressed assets

The central government has set up a panel to tackle the issue of stressed power assets in the country. The committee is headed by Amitabh Kant, CEO, NITI Aayog, and comprises secretaries from the Ministry of Power (MoP), the Ministry of Coal and the Department of Financial Services. It is estimated that non-performing assets (NPAs) in the power sector currently account for 5.9 per cent of the banking sector’s total outstanding advances of Rs 4.73 trillion. The Department of Financial Services had identified 34 stressed coal-based power projects with an estimated debt of Rs 1.77 trillion which have been reviewed by the government. The issues faced by the projects include a lack of funds, power purchase agreements and fuel security.